PACER INTERNATIONAL INCOME DROPS 53% IN 2001
Pacer International, the non-asset-based North American third-party logistics provider, reported net income, including merger and one-time charges, of $7.0 million in 2001, down 52.7 percent over 2000.
Excluding the merger and one-time charges, net income on a tax-adjusted basis was $11.2 million.
Operating income for 2001 was $51.0 million, down $12.4 million from 2000, including the merger and one-time pre-tax charges in 2000 of $7.7 million and in 2001 of $6.9 million. The decrease was due to increased sales, general and administrative costs in Pacer's retail segment related to acquisitions in 2000, and increased railcar lease and maintenance costs in the wholesale segment, the Concord, Calif.-based company said.
The decrease was offset by improved results in Pacer's retail segment, which provides logistics and supply-chain management services to manufacturers and retailers. The wholesale segment provides double-stack rail transportation services.
Consolidated revenues for the fiscal year, ended Dec. 28, were $1.67 billion, up 30.4 percent from 2000. Excluding acquisitions made in 2000, gross revenues decreased about $40 million, principally in automotive revenues in both retail and wholesale segments of the company and international-related revenues in the wholesale segment.
After starting the year with disappointing financial results, the company underwent centralization and equipment downsizing along with other cost-cutting measures.
'During 2001, we completed the centralization of our rail and truck brokerage operations and have exceeded the expected synergies of Pacer International's merger with Rail Van Inc.,' said Don Orris, chairman and chief executive officer of Pacer International. 'We also have completed the rationalization of our wholesale segment's fleet, both containers and chassis.'